Chapter 1: Introduction to Operations and Supply Chain Management
Look for articles related to supply chain online or at Fortune, BusinessWeek, or CNN. How do they relate to the primary topics discussed in this chapter?
As discussed in the chapter, supply chain management is one of the most important functions in running a business. Sometimes it is referred to as the factor that determines success or failure. Businesses have based their success on well thought and organized supply chains. In the chapter, one of the topics that were mentioned was globalization. As we have experienced and still experiencing globalization has become part of the life cycle of a ...view middle of the document...
In other words, for some businesses efficient supply chain means that raw materials and whatever else is needed for operations to come up with the right output, the right input is brought to them at the right place and time by efficient supply chains. All of these facts can be described in one statement made by the CEO of Motorola, “The best-run companies usually have the best supply chain.”
The second article that I chose for this question is, “What makes Samsung Tops in TVs,” by Moon Ihlwan. Samsung has the largest market share in TVs and monitors, 2.2% more than runner up LG Electronics. The statement made by Yoon Boo Keun, “Supply Chain Management sets us apart from our rivals in the most significant way," show the importance of effective supply chain management. This article touches another aspect of supply chain management, that of low inventory levels. As companies expanded to the global markets they needed to operate factories abroad and manage inventory in a way that everything would be at the right place and time. The first way of doing that was by keeping enormous amounts of inventory in storage rooms so they would be able to deliver them at any time. This way of targeting the inventory factor turned out to be extremely expensive. That is where supply chains come into play and that is what Samsung based its supply chain success on. As mentioned by Yoon Boo Keun, executive vice-president of TV and monitor business for Samsung, prices for their products fall as rapidly as they become very standardized. They are always trying to come up with innovations that will give them a competitive advantage but at the same time more innovation and better quality means more costs. That is where they are more successful at. They are spending the money on innovation and better quality but in order to keep their products at competitive and affordable prices they invest on efficient supply chains. That enables them to keep less amounts of inventory and therefore less storage costs. Furthermore, Samsung is “the only one in the industry capable of launching the whole line of products simultaneously in global markets.”
The third article that I chose for this question...